Business, 11.06.2021 14:50 luischavolla10

2. Suppose that this year’s money supply is $500 billion, nominal GDP is $10 trillion, and real GDP is $5 trillion. a. What is the price level? What is the velocity of money?
b. Suppose the velocity is constant and the economy’s output of goods and services rises by 5% each year. What will happen to nominal GDP and the price level next year if the FED keeps the money supply constant?
c. What money supply should the FED set next year if it wants to keep the price level constant?
d. What money supply should the FED set next year if it wants inflation of 10%?

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 19:00

Sara is a manager at a restaurant with employees from different cultural backgrounds. which action of sara could employees perceive as an act of favoritism?

Answers: 1

Answer

Business, 22.06.2019 17:40

To appeal to a new target market, the maker of hill's coffee has changed the product's package design, reformulated the coffee, begun advertising price discounts in women's magazines, and started distributing the product through gourmet coffee shops. what has been changed? a. the product's perceptual value. b.the product's 4ps. c. the method used in its target marketing. d. the ownership of the product line. e. the product's utility.

Answers: 3

Answer

Business, 22.06.2019 20:40

On january 1, 2017, pharoah company issued 10-year, $2,020,000 face value, 6% bonds, at par. each $1,000 bond is convertible into 16 shares of pharoah common stock. pharoah’s net income in 2017 was $317,000, and its tax rate was 40%. the company had 97,000 shares of common stock outstanding throughout 2017. none of the bonds were converted in 2017. (a) compute diluted earnings per share for 2017. (round answer to 2 decimal places, e.g. $2.55.) diluted earnings per share

Answers: 3

Answer

Business, 23.06.2019 10:00

At the beginning of each month, desmond receives a written statement from his bank containing all the transactions processed on his checking account for the previous month desmond compares his check register to this bank statement. this comparison is known as your account. a. confirming b. reconciling c. comparing d. finalizing

Answers: 1

Answer

You know the right answer?

2. Suppose that this year’s money supply is $500 billion, nominal GDP is $10 trillion, and real GDP...

Questions